sjrcpa
Level 15
10-07-2020
03:40 PM
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Yes it is the Wynne case.
Credit for DE tax paid by a MD resident can be claimed against both state and local MD tax. But DE tax is very low compared to MD, so the full amount might be used against the state tax with nothing left for local tax. That is the order in which the credits are computed.
Credit is limited to the lesser of MD tax (state and local) on doubly taxed income or tax paid to other state.
The more I know the more I don’t know.